Construction software pricing is a vital aspect for obtaining the perfect software for any construction project as it can bring operational effectiveness & cost cutback with an all-in-one solution which can make a construction project successful.

In this regard, Software Advice has published an exclusive e-book by market researcher and author Janna Finch titled How Much Does Construction Software Cost? that provides in-depth information on licensing and pricing structure of project management software. These will include common license models, often-overlooked costs and pricing of top systems. "If you have little experience purchasing software, the information in this guide will bring you up to speed on pricing and licensing language.” says Finch. “You’ll also find out what often-overlooked costs and services impact the final cost. That way, you aren’t going in blind when getting quotes and negotiating with vendors. Plus, we organized base license costs for 15 popular products, so it's a good reference when beginning (or ending) your search--we did some of the legwork so you don’t have to."

Topics covered :-

Right Pricing Model for your business: Differentiate amid perpetual, subscription and open-source licenses to find out the perfect model that is most financially suitable for your business. "No matter the type of software license you choose--perpetual, subscription, or open-source--the total cost of ownership converges over time so you’ll end up paying about the same amount if you use the software for 8 to 10 years or more." says Finch.

License and development fees: Figure out the amount to be paid for perpetual/monthly license fees or for development fees (concerning open-source licenses). Finch comments, "Subscription licenses have lower upfront costs than perpetual licenses, where most of the cost is paid upfront, and open-source licenses are usually (not always) free of charge so that cost is completely eliminated. However, all products incur maintenance, upgrades, renewals and other recurring costs--add those up over time and the total cost of ownership eventually equalizes."

Unseen expenditure that enhances the total cost of ownership: Upfront and periodic costs are usually not included in advertised license fees. Detect the costs which several buyers oversee for estimating the accurate price of owning and retaining a system.

The cost of most approved systems: Make out what the leading vendors impose price for construction project management software licenses to provide you a basis for cost comparisons.

Author Commentary (Janna Finch): Most important thing for PMs to understand about software pricing/licenses "No matter the type of software license you choose--perpetual, subscription, or open-source--the total cost of ownership converges over time so you’ll end up paying about the same amount if you use the software for 8 to 10 years or more." says Janna Finch, market researcher at Software Advice and author of the new eBook How Much Does Construction Software Cost?

"Subscription licenses have lower upfront costs than perpetual licenses, where most of the cost is paid upfront, and open-source licenses are usually (not always) free of charge so that cost is completely eliminated. However, all products incur maintenance, upgrades, renewals and other recurring costs--add those up over time and the total cost of ownership eventually equalizes."

How the eBook can help PMs evaluate/select software: "If you have little experience purchasing software, the information in this guide will bring you up to speed on pricing and licensing language. You’ll also find out what often-overlooked costs and services impact the final cost. That way, you aren’t going in blind when getting quotes and negotiating with vendors. Plus, we organized base license costs for 15 popular products, so it's a good reference when beginning (or ending) your search--we did some of the legwork so you don’t have to."

Type of licenses software vendors provide?

Subscription: Several vendors embrace cloud-based deployment model and so monthly and annual subscription licenses are accepted widely. Small construction companies prefer to apply for subscription licenses due to their reduced upfront costs which compel them to become more conscious about their budget.

Perpetual: As large construction companies retain on-premise systems and in-house IT teams generally look for perennial licenses. Though upfront costs are high here, but recurring costs are comparatively low as the license fee is paid one time. Some vendors have selected the cloud-based model permanently, whereas others like to go with both subscription and perpetual licenses.

Open Source: Open-source licenses are rarely used. Because open-source software is adjustable and can be easily developed and downloaded at free of cost, companies having unique workflows and demands can configure it according to their requirements and thus save huge money in license costs. However, Costs for custom development are vital here.

You can download the free eBook “How Much Does Construction Software Cost?” here.